21 FEBRUARY 1925, Page 2

However, M. Loucheur seems to be thoroughly optim- istic, and

says. his only fear is that the franc will rise too fast ! It is interesting to notice, however, that his only real suggestion for bringing this about is for the Treasury to raise a new loan to be used on the Bourse in support of the franc. All this ignores the one real cause of the franc's fall—the failure to balance the Budget. No juggling and twisting can possibly avail against national insolvency. All the present calculations in France are being made without any consideration of debt repayment either to us or to America. We cannot feel any confidence that M. Herriot will really undertake the unpleasant business of putting French finances on a safe basis. If he does not, it may lead to the fall of his Government. Then possibly there will be an oppor- tunity for that acute financial brain, M. Caillaux, to return effectively to public life.